Question

Given the demand fuhction Q=15-3P, what is the quantity demanded if the price of the good is PHP 10.00?​

Answer 1

Answer:

Q = 15 - 3×10 = -15 units, so at this price zero quantity will be demanded.

2. The price elasticity of demand coefficient is:

Ed = (30 - 15) / (2-3) ×(2+3) / (30+15)

= −5/3

= −1.67.

So, the demand is elastic.